Ramco Cements to Double Capacity with ₹1,250 Crore Expansion Plan in India

The announcement of the expansion comes on the heels of Ramco Cements' robust financial performance in the third quarter of fiscal 2024.

Ramco Cements to Double Capacity with ₹1,250 Crore Expansion Plan in India
Photo by Anaya Katlego / Unsplash

The company reported a 39% increase in net profit at ₹93 crore for the quarter ending December 31, 2023, compared to ₹67 crore in the same period last year. This impressive growth was achieved despite some impact on cement demand due to cyclone Michaung.

In a strategic move that heralds a new era for the Indian cement industry, Ramco Cements Ltd. has unveiled an ambitious expansion plan for its Kalavatala integrated cement manufacturing complex in Andhra Pradesh. The company, renowned for its commitment to sustainable growth, will invest ₹1,250 crore to double the plant's capacity, a decision that echoes with the rhythm of progress and environmental responsibility.

The proposed expansion includes the establishment of a second line to increase the clinker capacity to 6.3 million tonnes per annum (MTPA) and the cement capacity to 3 MTPA. This move will catapult Ramco Cements into the league of major cement producers in the country, solidifying its position as a significant player in the industry. Furthermore, the company plans to invest ₹153 crore to set up a 10 MW WHRS at its Ramasamy Raja Nagar Plant in Tamil Nadu, expected to be commissioned by March 2025. This investment underscores Ramco Cements' dedication to sustainable practices and its role as a responsible corporate citizen.

The decision was made public on February 8, 2024, with the expansion project expected to be completed by FY26. The Kalavatala plant, located in Andhra Pradesh, is the focal point of this expansion, which will also have ripple effects across the broader cement industry and the nation's economy.

Source: BNN Breaking